2011 March

Determination: Holders of Offices included in the Special Division of the Public Service and Prescribed Offices – 2011 March 31st

SALARIES AND ALLOWANCES TRIBUNALA DETERMINATION MADE IN ACCORDANCE WITH SECTION 6(1)(c)(d) AND (e) OF THE SALARIES AND ALLOWANCES ACT 1975 FOR CLERKS AND DEPUTY CLERKS OF THE PARLIAMENT, PUBLIC SERVICE OFFICE HOLDERS INCLUDED IN THE SPECIAL DIVISION AND PERSONS HOLDING OFFICES PRESCRIBED IN SALARIES AND ALLOWANCES REGULATION NUMBER 3

The Tribunal last issued a general determination dealing with Clerks of the Parliament and the holders of Special Division positions and Prescribed Offices on 1 April 2010.

In accordance with section 8 of the Salaries and Allowances Act 1975, the Tribunal is required to issue a determination at intervals of not more than 12 months. Accordingly it has undertaken an enquiry into the current classification and remuneration applicable to this group of office holders.

CONDUCT OF THE INQUIRY

In discharging the responsibilities given to it by the Parliament, the Tribunal has in the context of its current enquiry adopted the following approach. It has:

advertised for public submissions;

written to office holders inviting submissions about their positions;

undertaken a series of individual reviews of Special Division positions and Prescribed Offices;

considered relevant labour market and economic data; and

sought advice from its Statutory Adviser.

Public Submissions

Submissions to the Tribunal’s current enquiry were invited through an advertisement placed in The West Australian of 4 December 2010 and on the Tribunal’s web site with a closing date of 17 December 2010.

Invitation to Office Holders

The Tribunal wrote to office holders on 1 and 2 December 2010 inviting submissions. In so doing, office holders were invited to advise the Tribunal of any significant changes to the work value of their positions and other relevant factors.

Review

In line with past practice, the Tribunal, independent of any submissions, has initiated reviews of a number of positions. Mercer (Australia) Pty Ltd (“Mercer”), a leading consultancy organisation with established national expertise in public and private sector remuneration, was engaged to examine a number of positions in the human services portfolio along with a number of Group 1 heads of agencies and to report to the Tribunal. Comparative remuneration data was also sought from Mercer

Labour Market and Economic Data

The Tribunal considered labour market and economic indices including the Wage Price Index (WPI), Average Weekly Earnings, the Consumer Price Index (CPI) and Total Employment Growth. The Tribunal has monitored economic commentaries and forecasts from a range of state, national and international sources. Consideration has also been given to recent increases provided under existing awards and current public sector wage negotiations.

Advice on Wages Policy

The Tribunal sought advice from the Director General of the Department of Commerce regarding the State Government’s wages policy and current award negotiations.

Advice from Statutory Advisor

The Tribunal requested advice from its Statutory Advisor on the Special Division and Prescribed Offices, regarding submissions to the Tribunal, machinery of government changes, the allowances available to Chief Executive Officers and a range of other relevant issues.

CONSIDERATIONS

During the current inquiry, the Tribunal reviewed all positions in the Special Division of the Public Service, Prescribed Offices, the Clerks and Deputy Clerks of the Parliament and the Chief Commissioner, Senior Commissioner and Commissioners of the Western Australian Industrial Relations Commission (WAIRC). The Tribunal considered all submissions received, the state of the labour market and the economy, as well as remuneration structures for senior public sector offices in other Australian jurisdictions.

When determining appropriate classifications for office holders’ positions, the Tribunal took into account a variety of factors including work value, market forces, value to the State and government priorities. It also had regard for whether positions had been reviewed during the preceding year and whether they had been affected by structural change.

In its 2010 determination on the Special Division of the Public Service and Prescribed Offices, the Tribunal noted that the number of positions placed under its jurisdiction had increased from 97 in 2006 to 126 in 2010. The number of these offices within the Tribunal’s jurisdiction has increased by a further 12 per cent since April 2010 and now stands at 141.[1]

During the year since the last general determination, the Tribunal has determined the remuneration of 4 chief executive officer positions and 24 second tier positions. One quarter of these positions required new determinations as a result of machinery of government changes.

During the year since the last general determination in April 2010, the Tribunal was advised that the following offices were removed from its jurisdiction:

General Manager, Environmental Protection Authority;

Deputy Director General, Development, Department of State Development; and

Valuer General.

Submissions

Twenty submissions were received from office holders in the Special Division of the Public Service and Prescribed Offices. Fifteen further office holders advised the Tribunal that no submission would be made.

Most submissions sought an increase in classification related to changes in responsibilities that had occurred in the roles of the office holders. Two submissions raised issues of relativities between the salaries of offices in the Special Division and the salaries of subordinate positions outside the Special Division. They expressed concerns about the relatively small margin between the Special Division officers’ salaries and those of their subordinates.

A submission from one chief executive officer highlighted the growing number of second and third tier positions in large agencies and indicated that they had eroded relativities with positions of chief executive officers in small agencies. The submission noted that the vast majority of second tier positions in the Special Division are paid above the salary of the chief executive officers in smaller agencies.

A submission from the Western Australian Industrial Relations Commission (WAIRC) states that there had been work value increases resulting from increased jurisdiction and diversity of work for Commissioners; work load had reduced as a result of Commonwealth workplace relations legislation; and the remuneration of Western Australian Commissioners has declined relative to comparators within this State and relative to comparators in other jurisdictions.

The submission also raised concerns that there was an inequity for two Commissioners who can only access the West State Superannuation Scheme rather than the Gold State Superannuation Scheme or the Pension Scheme which are closed to new employees.

The Clerks and Deputy Clerks of the Parliament made a submission seeking significant salary increases to align with an average of salaries for their counterparts in other jurisdictions.

Government Wages Policy

The Tribunal was advised that the Government’s wages policy provides for possible wage increases above CPI where work practice reforms or efficiency initiatives are included, with total increases capped at projected growth in the Western Australian WPI (currently 4.25% for 2011/12).

Work Value Assessments

The Tribunal commissioned Mercer (Australia) Pty Ltd (‘Mercer’) to conduct work value assessments on the following 10 offices:

These work value assessments are a measure of the size of the jobs assessed, the nature and complexity of the work, and the accountabilities and skills required of the office holder.

Comparisons with other Jurisdictions

The Tribunal also sought advice from Mercer on the Tribunal’s current pay structure relative to other Australian jurisdictions. In general terms, remuneration increases awarded by the Tribunal to the Special Division of the Public Service in Western Australia have been less than those awarded to senior government executives in South Australia, Queensland and New South Wales in recent years. Over the period 2006 to 2010, the salaries of Western Australian Government executives have fallen behind those of their counterparts in the comparator states by approximately 0.75 per cent to 1.4 per cent.

Comparisons with WA Public Sector and Economic and Labour Market Indices

Comparisons were made between increases awarded to Special Division Office holders, increases awarded to the General Division of the Public Service and the increases in key economic and labour market indices.

Table 1: Salary Increases in the General and Special Divisions of the Public Service compared with Increases in Key Economic and Labour Market Indices 2006-2010

Table 1 shows that the salaries of the Special Division have not kept pace with movements in CPI or WPI indicators on a State or National level since 2006. This can mostly be attributed to the general freeze in salaries under the Tribunal’s jurisdiction in 2009. Furthermore, senior officers of the General Division of the Public Service have received salary increases that are around 8 per cent higher than those awarded to the Special Division of the Public Service over the same period. This represents an erosion of the remuneration of Special Division positions relative to General Division positions of a similar work value.

In order for the salaries of Special Division officers to be brought back in line with these indicators using 2006 salaries as a base line, the remuneration of the Special Division would need to be increased by:

approximately 1.6 per cent to match the CPI Perth;

from 7.2 to 7.9 per cent to match the various WA WPI indicators;

from 2.9 to 5.1 per cent to match the various national WPI indicators; or

7.9 per cent to match a Class 1 officer under the Public Sector General Agreement.

Labour Market and Economic Data

Table 2 shows forecasts for the major economic indicators from the Western Australian Government’s 2010/11 Mid Year Financial Projections Statement. Forecasts shown are on an annual average basis.

Source: 2010/11 Western Australian Government Mid-year Financial Projections Statement December 2010, Page 3. (a) Real Gross State Product (GSP) and State Final Demand (SFD) data are based 2009-10 State Accounts data, released on 19 November 2010.

The Western Australian Treasurer has stated that, "... the WA economy is expected to strengthen with growth returning to about four to five per cent per annum. The projected growth reflects robust global demand for the State's resources, especially from key markets in Asia, and the sustained strength in global commodity markets has reinvigorated investment in major resource projects."[2]

Australian Bureau of Statistics data illustrate the growing strength of the Western Australian economy in relation to the national economy. For the year ending January 2011, Western Australia’s exports grew by 36.8 per cent to $104.6 billion. Western Australia accounted for almost 45 per cent of the nation’s merchandise exports and 70 per cent of the nation’s merchandise exports to China.[3]

At a global level, economic indicators have also been positive. The Reserve Bank Board stated in March 2011 that, “The global economy is continuing its expansion, led by very strong growth in the Asian region.”[4]

In considering labour market pressures, the Tribunal noted that Western Australia’s seasonally adjusted unemployment rate of 4.2 per cent for the year ending February 2011 was the lowest in the nation and below the forecasts in the Mid Year Financial Projections. Employment growth is 1.4 per cent higher than a year ago and according to the Reserve Bank, “Most leading indicators suggest further growth in employment, though most likely at a slower pace. Reports of skills shortages remain confined, at this point, to the resources and related sectors.”[5]

CONCLUSIONS

The existing salary structure for Special Division and Prescribed Office holders was established in 1998. Since then, an expansion in the number of Special Division and Prescribed Offices has put considerable pressure on the structure to the point where it can no longer adequately accommodate the various work values, priorities and remuneration levels of the range of positions within the Tribunal’s jurisdiction.

Presently, the range within which salaries are to be designated fails to properly differentiate levels of CEO responsibility. This problem has been reflected in recruitment and retention issues at senior levels within the Public Service, so much so that to meet market pressures, positions have been taken out of the Tribunal’s jurisdiction and salaries outside the Special Division remuneration structure have been struck for individual officers. This destroys the integrity of the salary range established by the Tribunal and undermines the objective of the Salaries and Allowances Act.

These problems are further compounded by the inability of the existing structure to properly differentiate CEO levels of remuneration from those ascribed to their deputies and other second and third level officers in major departments. Furthermore, relevance of a work value assessment is distorted by the separate salary scales for tenured and non-tenured office holders and by the provision of the CEO incremental progression which takes the remuneration into another work value band.

To address these issues in the short term, the Tribunal has revised the salary structure for CEOs in the Special Division and Prescribed Office schedules.

In this determination the 20 per cent distinction between tenured and non-tenured rates of pay for CEOs has been deleted. Historically this distinction was introduced to attract personnel from the private sector at a time when most senior public servants and departmental heads held tenure. Today there are only 22 holders of Special Division and Prescribed Offices (listed in Schedules 1 and 2 of the general determination) who hold tenure and only 5 of these are CEOs. The remainder are employed on contracts of up to 5 years with no right of return to a Public Service position at the expiration of their contracts. Senior Executive Service officers are also generally employed on 5 year contracts and do not have the option of accessing a 20 per cent salary increase. Similarly some Prescribed Office holders are not in a position to waive tenure and therefore cannot access a non-tenured rate of pay. Removal of the tenured and non-tenured pay distinction will remove this inequity. It should be noted that in translating the current pay structure across to the new pay structure set out in this determination, the relativities between those office holders on tenured rates of pay and those who have no tenure or have waived tenure, have been maintained in general terms.

Minimum and maximum salary points within the existing Group 2, Group 3 and Group 4 structure have been retained in general terms and translated across to the new salary structure for CEOs. Lower salary points within Group 1 have been deleted to differentiate the Special Division and Prescribed Office classification from Classes 1 to 4 in the Senior Executive Service under the Public Service General Agreement (rates which presently overlap the four lowest points of the Tribunal’s salary structure).

For CEOs eligible to receive the CEO’s incremental step, but who have not yet completed the qualifying period set out in the April 2010 determination, adjustments have been made so as not to disadvantage these officers. The CEO allowance introduced in April 2010 has been absorbed into the salary rate under the revised salary structure.

The revised structure has been adopted to implement an interim step toward a broad banded model. However at this time the Tribunal has only addressed the CEO positions within its jurisdiction.

While a properly developed broad banding approach to salary determination is dependent upon amendments to the Salaries and Allowances Act, the Tribunal proposes to expand the initiative taken with respect to CEOs holding Special Division and Prescribed Offices to non-CEO office holders. The Tribunal will be working towards the implementation of the next phase in this initiative in July 2011.

In this context the Tribunal is considering a total employment cost model. This has implications for taking into account the cost of motor vehicles, superannuation and other benefits in addition to salary.

There is a strong argument to adjust salaries of Special Division and Prescribed Office holders at this time to re-establish general parity with interstate comparators and to ensure meaningful distinctions in remuneration levels with officers holding positions in the Senior Executive Service. However, it would be premature to attempt only to address these issues with a general adjustment when the issues are inherent in the existing salary structure.

When the Tribunal is satisfied that it has better aligned the salary structure to reflect the value and responsibility of each level of CEO in departments and agencies, their deputies and other executive officers, then the outcome will be reviewed to ensure that levels of remuneration serve the needs of the State in being able to attract, retain and reward the highly skilled and dedicated personnel necessary to meet the challenges the State faces.

At this time, an adjustment in salaries in line with general economic movements is appropriate. Accordingly, salaries shall be increased by 3.6 per cent with effect from 1 May 2011.

As already noted, the Tribunal will be undertaking the next phase in implementing an interim broad banding approach to salary determination in July 2011. The Tribunal will continue to monitor economic and labour market indicators together with general movements in prices and salaries in the interim.

Work Value Assessments and Remuneration Adjustments

The 10 work value assessments commissioned by the Tribunal were taken into account within the Tribunal’s remuneration framework for Special Division and Prescribed Offices. It was concluded that the remuneration of the following positions should be adjusted beyond the general increase awarded to all Special Division and Prescribed Office holders.

Director General, Disability Services Commission – The Tribunal considered that the accountability of the position had grown relative to the growth in the size of the agency, its budget and a range of other factors.

Electoral Commissioner – Amongst other factors, the Tribunal took account of an increase in complexity in the work of the Commission, an increase in the judgement required to deal with the growing technological environment in which elections operate and the skills required for dispute resolution in a very public and political environment.

Chief Executive Officer, WorkCover WA – The Tribunal took into account a range of factors and in particular recognised the increasing complexity of the role in a changing regulatory environment and salary relativities both within the organisation and across the wider public sector.

A remuneration adjustment was also considered appropriate for the following position based on the office holder’s submission, advice from the Tribunal’s Statutory Advisor and a range of factors consistent with the Tribunal’s remuneration framework.

Director General, Department of Mines and Petroleum – Factors considered by the Tribunal included a new safety regulatory framework for resources safety, the lead agency role in attracting private exploration investment and Government priorities.

Motor Vehicle Entitlements

The Tribunal has taken a new approach to motor vehicle entitlements in this determination. The intent has been to avoid nominating benchmark vehicles. The former approach had become problematic due to the change of vehicle models and appeared to be out of step with the Government’s policy for smaller more fuel efficient vehicles.

In place of nominated benchmark vehicles, the Tribunal has determined a monetary value for the vehicle lease and a monetary value for office holders who elect to cash out the entitlement. The monetary value of the lease has been calculated to avoid reducing the existing entitlements of Special Division and Prescribed Office holders while providing greater flexibility in the choice of vehicle.

Senior Legal Officers’ Positions

The Tribunal determined an increase in remuneration for Senior Legal Officers effective from 1 July 2010, the timing of which was aligned to increases in judicial salaries.

In this determination, the Tribunal has provided for an increase of 3.6 per cent for Senior Legal Officers from 1 May 2011 and proposes to consider further adjustments in the context of its remuneration framework later this year.

Court Registrars’ Positions

The Tribunal has continued to determine the remuneration of Court Registrars at the same time as it has reported on judicial salaries, principally because there are some Registrars who are also appointed as Magistrates.

This determination reflects the remuneration awarded to the Court Registrars in the Tribunal’s determination of 26 November 2010 which is effective from 1 May 2011.

Director of Public Prosecutions

The remuneration of the position of Director of Public Prosecutions (DPP) has been determined by reference to the remuneration payable to a Puisne Judge of the Supreme Court. The additional CEO allowance payable to the DPP under the Tribunal’s determination of 1 April 2010 has now been discontinued. A further increase in judicial salaries will take effect from 1 May 2011 and will flow on to the DPP and Deputy DPP.

Clerks of the Parliament

The Tribunal took account of the submission of the Clerks and Deputy Clerks of the Parliament and decided to review the situation in the context of its inquiry into the remuneration of Members of Parliament later in the year.

In the meantime, the Tribunal has provided in this determination for a salary increase of 3.6 per cent effective from 1 May 2011.

Industrial Relations Commissioners

The Tribunal considered the data supplied and the issues raised in the submission from the WAIRC.

In relation to the disparities between the different superannuation schemes accessible by the Commissioners, the Tribunal noted that such disparities applied across the wider public sector. The Tribunal concluded that any attempt to equalise the retirement benefits of individuals by means of salary adjustments would be impossible because of the variables pertaining to each scheme and each individual (e.g. varying investment outcomes, lengths of service, retirement age and life expectancy).

The Tribunal also noted that the remuneration of Commissioners in Western Australia was lagging behind relevant counterparts in other jurisdictions. In this determination, the Tribunal has provided for a 3.6 per cent salary increase effective from 1 May 2011, however it proposes to consider further adjustments in the context of its remuneration framework and the salaries of quasi judicial office holders later this year.

DETERMINATION

In discharging its statutory duties, the Tribunal determines that a salary increase of 3.6 per cent be awarded for office holders in the Special Division of the Public Service, Prescribed Office holders and the Clerks and Deputy Clerks of the Parliament.

Remuneration will be paid in accordance with rates and provisions set out in the schedules following which take into account other adjustments related to specific offices and office holders.

The determination will now issue.

Signed at Perth this 31st day of March 2011.

W S Coleman AM

C A Broadbent

B J Moore

CHAIRMAN

MEMBER

MEMBER

SALARIES AND ALLOWANCES TRIBUNAL

FIRST SCHEDULE: HOLDERS OF OFFICES INCLUDED IN THE SPECIAL DIVISION OF THE PUBLIC SERVICE AND PRESCRIBED OFFICES

Pursuant to section 6(1)(d) and (e) of the Salaries and Allowances Act 1975 the Salaries and Allowances Tribunal determines the remuneration to be paid per annum to the officers of the Public Service who hold offices included in the Special Division and those who hold Prescribed Offices. The remuneration is effective from 1 May 2011.

PART 1 – REMUNERATION AND OFFICES

SPECIAL DIVISION CEOs

Office

Department or Agency

Office Holder

Salary

Director General

Agriculture and Food

R Delane

$263,481

Chief Executive Officer

Alcohol and Drug Authority

N Guard

$211,891

Director General

Attorney General

C Gwilliam

$290,992

Chief Executive Officer

Botanic Gardens and Parks Authority

M Webb

$183,285

Managing Director

Central Institute of Technology

N Fernandes

$199,492

Managing Director

Challenger Institute of Technology

E Harris

$190,141

Chief Executive Officer

ChemCentre

P Millington

$183,285

Director General

Child Protection

T Murphy

$336,218

Director General

Commerce

B Bradley

$290,992

Director General

Communities

J Perkins

$238,641

Commissioner

Corrective Services

I Johnson

$336,218

Director General

Culture and the Arts

A Lucas

$229,220

Chief Executive Officer

Curriculum Council of Western Australia

Vacant

$-

Managing Director

CY O'Connor College

J Scott

$183,285

Director General

Disability Services Commission

R Chalmers

$315,524

Managing Director

Durack Institute of Technology

B Beevers

$183,285

Chief Executive Officer

East Perth Redevelopment Authority

A Morgan

$263,481

Director General

Education

S O'Neill

$405,353

Chief Executive Officer

Education Services

R Strickland

$229,220

Director General

Environment and Conservation

K McNamara

$336,218

Chief Executive Officer

Fisheries

S Smith

$290,992

Director General

Housing

G Searle

$368,972

Managing Director

Great Southern Institute of Technology

L Rozlapa

$183,285

Director General

Indigenous Affairs

P Walker

$238,641

Registrar

Department of the Registrar, Western Australian Industrial Relations Commission

1.1 A person holding more than one Special Division or Prescribed Office, shall receive remuneration for one such office only, being the office classified or remunerated at the highest level.

PART 2 – NON-TENURED REMUNERATION

2.1 This Part is applicable to Special Division and Prescribed Office holders identified as Non CEOs in Part 1 of this determination.

2.2 Non-tenured remuneration is payable to:

2.2.1 A person holding a Prescribed Office for the purposes of section 6(1)(e) of the Salaries and Allowances Act and who is appointed on a fixed term contract without any guarantee of continued employment at the expiration of such term.

2.2.2 An officer holding an office included in the Special Division of the Public Service for the purposes of section 6(1)(d) of the Salaries and Allowances Act 1975, who is appointed under the provisions of the Public Sector Management Act 1994 on a fixed term contract without any right of continued employment at the expiration of such term.

2.2.3 An officer for the purposes of 6(1)(d) or (e) of the Salaries and Allowances Act 1975 who does not elect to retain a right of return as provided in section 58 of the Public Sector Management Act 1994.

2.3 Non-tenured remuneration is calculated by adding twenty-percent to the determined tenured remuneration.

PART 3 – MOTOR VEHICLES

Section 1: General

1.1 In addition to the remuneration determined for the officers and persons holding offices listed in Part 1, the office holders have an entitlement to a motor vehicle for private use provided through State Fleet. The notional value of the lease per annum shall be the relevant cash value set out in Section 4 of this Part.

1.2 The vehicle (being part of the Government-owned State Fleet) should be managed in accordance with the policies and conditions established and amended from time to time by the Department of Treasury and Finance (the effective owner of the State Fleet). Applicable terms and conditions are currently set out in the document "State Fleet - Agency General Agreement".

1.3 A person holding more than one Special Division or Prescribed Office, shall be entitled to a motor vehicle or cash in lieu of a motor vehicle for one such office only, being the office classified or remunerated at the highest level.

1.4 An individual accessing a vehicle under this Part shall take due care of the condition and security of the vehicle. This includes responsibility for ensuring the vehicle is regularly serviced and maintained at government expense according to the manufacturer’s recommended specifications, and making arrangements for off-street parking at home, whenever practicable, with appropriate security precautions taken at all times. Any theft or damage, however slight, should be reported to the Fleet Manager with a view to repairs being affected at the earliest opportunity.

1.5 Motor vehicles leased for office holders under this determination or a previous determination of the Tribunal shall not be changed prior to the expiration of the lease.

1.6 While the vehicle may be used anywhere in Western Australia at no cost to the individual, if the vehicle is driven interstate, the individual is liable for the cost of fuel and oil while interstate. Furthermore, if used outside of Western Australia, the custodian must be in the vehicle at all times that it is being used.

1.7 Should the officer choose not to use the vehicle, supplied through State Fleet, for business, or for travelling to and from work, but allows and authorises the vehicle to be used for private use during business hours by another family member or person, he/she is not entitled to access another government vehicle for his/her private use, including transport to and from work.

1.8 Should the officer choose to take cash in lieu of a motor vehicle supplied through State Fleet, he/she is not entitled to claim a mileage allowance for use of their private vehicle for work purposes. Neither is he/she entitled to access another government vehicle for their personal use including transport to and from work.

Section 2: Determining the Cost of the Lease and the Cost to the Office Holder

2.1 Where the total lease cost of the chosen vehicle and accessories exceeds the relevant motor vehicle benefit determined in this section, the additional cost must be borne by the office holder. This includes the purchase cost of any accessories and the installation cost and removal costs if required, before disposal of the vehicle. No additional costs shall be incurred by the office holder as a result of fluctuations in lease costs during the specified term of the lease.

2.2 Where the cost of leasing a vehicle and accessories in accordance with this determination is less than the relevant motor vehicle benefit determined in this section, the difference in cost to Government is to be paid fortnightly as part of the individual’s remuneration.

2.3 The method of determining whether an additional contribution must be made by the office holder or the surplus paid as part of salary, shall be based on the actual cost to Government of the vehicle sought (using the formula detailed below), compared with the relevant value determined for the benefit in this section. The cost at the time of entering into the lease is applicable.

2.4 The motor vehicle costs must include the lease cost, Fringe Benefits Tax (FBT) and all other operating costs based on the relevant figure of nominated kilometres to be travelled annually. The formula to be adopted in valuing the motor vehicle is:

Fringe Benefits Tax Exempt Agencies: Where an organisation is exempt from FBT in accordance with Commonwealth Government legislation, a notional amount equal to the standard FBT must be added to the cost of the benefit.

2.6 Each lease should be tailored to achieve the most cost-effective arrangement based on individual usage patterns.

Section 3: Choice of Motor Vehicle

3.1 Where an office holder elects to access a leased vehicle under State Fleet arrangements, he/she may choose any vehicle and accessories in the relevant Western Australian Government Common Use Contract or an “off contract” vehicle and accessories available under Government leasing arrangements in accordance with the following criteria.

3.2 Vehicles with supercharged or V8 engines are not included. Turbo charged engines with a capacity greater than 3.0 litres are not included.

3.3 Office holders unable to lease their choice of vehicle within the scope of the arrangements set out in this determination should elect to receive the relevant cash value set out in section 4 below.

Section 4: Cash Value

4.1 Where a person elects not to be provided with a motor vehicle through State Fleet he/she is entitled to the cash value being paid fortnightly as additional remuneration. The relevant cash value is to be determined in accordance with the following criteria.

Classification/ Remuneration

Cash Value

Below Group 2 Maximum for non-CEOs and Below $238,641 for CEOs

$20,300

Group 2 Maximum for non-CEOs and equal to or above $238,641 for CEOs

$22,650

For non-CEO positions where remuneration is determined in lieu of a classification

The tenured remuneration of the position should be compared to the tenured remuneration for the Group 1 to Group 4 range and the appropriate value obtained

PART 4 – REMUNERATION PACKAGE VALUE

Section 1: General

1.1 For the purposes of calculating the value of the remuneration package the employer cost of superannuation should be included in addition to the remuneration and the amount determined by the Tribunal for the motor vehicle provided.

1.2 Motor Vehicle: Part 3 contains the determination as to the value ascribed to the motor vehicle that will be provided or the amount that can be taken in lieu of a vehicle. Should an officer choose to take cash in lieu of a vehicle, it may have implications for their Gold State superannuable remuneration. A key issue here is that the Cash Value of the vehicle is not included in the officer’s remuneration for Gold State superannuation purposes. Also if the officer chooses a vehicle with a lease cost below the relevant value determined in Part 3, the surplus returned in additional remuneration is not included in the officer’s remuneration for Gold State superannuation purposes. Further information can be obtained from the GESB Members’ Services Centre.

1.3 Superannuation: Due to the closure of superannuation schemes over the past years, it is not possible to prescribe the value per person of the superannuation benefit. It is generally assumed that where a person was a member of the Western Australian public sector prior to 30 December 1995, the value of superannuation is twelve per cent of basic remuneration. For those who joined after that date, the superannuable component is in accordance with that required under the Superannuation Guarantee Levy.

1.4 Individuals should seek advice from their relevant fund manager or financial adviser in respect of matters mentioned above that might affect their superannuable remuneration.

1.5 Special Division and Prescribed Office holders are entitled to participate in salary packaging arrangements for superannuation and novated leases. Those arrangements can be effected in accordance with the “Guidelines for Salary Packaging in the WA Public Sector” document, which can be accessed at:

http://www.docep.wa.gov.au/LabourRelations/PDF/Circulars/7_07.pdf.

Signed at Perth this 31st day of March 2011.

W S Coleman AM

C A Broadbent

B J Moore

CHAIRMAN

MEMBER

MEMBER

SALARIES AND ALLOWANCES TRIBUNAL

SECOND SCHEDULE: SENIOR LEGAL OFFICES

Pursuant to section 6(1)(d) of the Salaries and Allowances Act 1975 the Salaries and Allowances Tribunal determines the remuneration to be paid per annum to the holders of the offices listed below and is as follows. The remuneration is effective from 1 May 2011.

PART 1 – REMUNERATION AND OFFICES

Office

Department or Agency

Tenured Classification

Non-Tenured Classification

State Solicitor

Attorney General

$337,605

$405,127

Parliamentary Counsel

Attorney General

$337,605

$405,127

State Counsel – Queen’s/Senior Counsel

Attorney General

$320,723

$384,867

State Counsel

Attorney General

$303,844

$364,613

Deputy State Solicitor – Queen’s/Senior Counsel

Attorney General

$295,406

$354,487

Deputy State Solicitor

Attorney General

$286,963

$344,355

Deputy Parliamentary Counsel

Attorney General

$286,963

$344,355

Senior Parliamentary Counsel

Attorney General

$270,086

$324,103

Senior Adviser, State Solicitor’s Office

Attorney General

$270,086

$324,103

Senior Adviser, State Solicitor’s Office

Attorney General

$270,086

$324,103

Senior Assistant Parliamentary Counsel

Attorney General

$219,444

$263,333

Adviser, State Solicitor’s Office

Attorney General

$219,444

$263,333

Director Legal Services

Office of the Director of Public Prosecutions

$253,780

$304,536

Consultant State Prosecutor – Queen’s/Senior Counsel

Office of the Director of Public Prosecutions

$266,467

$319,761

Consultant State Prosecutor

Office of the Director of Public Prosecutions

$253,780

$304,536

1.1 The remuneration is inclusive of Annual Leave Loading.

1.2 The holders of the offices in this Schedule have an entitlement to the provision of a fully maintained leased motor vehicle for private use to the notional value of $22,650 per annum.

1.3 In all other respects, the motor vehicle entitlements set out in Part 3 of the First Schedule of this determination apply to office holders listed in this Schedule.

PART 2 – NON-TENURED REMUNERATION

2.1 Non-tenured remuneration is payable to an office holder in this schedule who:

2.1.1 Is appointed under the provisions of the Public Sector Management Act 1994 on a fixed term contract without any right of continued employment at the expiration of such term; or

2.1.2 Does not elect to retain a right of return as provided in section 58 of the Public Sector Management Act 1994.

2.2 Non-tenured remuneration is calculated by adding twenty-percent to the determined tenured remuneration.

Signed at Perth this 31st day of March 2011.

W S Coleman AM

C A Broadbent

B J Moore

CHAIRMAN

MEMBER

MEMBER

SALARIES AND ALLOWANCES TRIBUNAL

THIRD SCHEDULE: COURT REGISTRARS

Pursuant to section 6(1)(d) of the Salaries and Allowances Act 1975 the Salaries and Allowances Tribunal determines the remuneration to be paid per annum to the holders of the offices listed below effective from 1 May 2011.

OFFICE

REMUNERATION

Supreme Court

Principal Registrar

$300,216

Registrar

$265,861

District Court

Principal Registrar

$279,599

Registrar

$262,717

Deputy Registrar

$254,836

1.1 The remuneration is inclusive of Annual Leave Loading.

1.2 The holders of the offices in this Schedule have an entitlement to the provision of a fully maintained leased motor vehicle for private use to the notional value of $22,650 per annum.

1.3 In all other respects, the motor vehicle entitlements set out in Part 3 of the First Schedule of this determination apply to office holders listed in this Schedule.

Signed at Perth this 31st day of March 2011.

W S Coleman AM

C A Broadbent

B J Moore

CHAIRMAN

MEMBER

MEMBER

SALARIES AND ALLOWANCES TRIBUNAL

FOURTH SCHEDULE: DIRECTOR OF PUBLIC PROSECUTIONS AND DEPUTY DIRECTOR OF PUBLIC PROSECUTIONS

Pursuant to section 6(1)(e) of the Salaries and Allowances Act 1975 the Salaries and Allowances Tribunal determines that the holder of the office of Director of Public Prosecutions is entitled to the remuneration and allowances payable from time to time to a Puisne Judge of the Supreme Court of Western Australia as awarded under the First Schedule of this determination; and that the holder of the office of Deputy Director of Public Prosecutions is entitled to the remuneration and allowances payable from time to time to a District Court Judge of Western Australia.

The holders of these offices are entitled to motor vehicles of the type provided to a Puisne Judge and a District Court Judge respectively.

Signed at Perth this 31st day of March 2011.

W S Coleman AM

C A Broadbent

B J Moore

CHAIRMAN

MEMBER

MEMBER

SALARIES AND ALLOWANCES TRIBUNAL

FIFTH SCHEDULE: CLERKS OF THE PARLIAMENT

Pursuant to section 6(1)(c) of the Salaries and Allowances Act 1975 the Salaries and Allowances Tribunal determines the remuneration to be paid per annum to the holders of the offices listed below and is as follows with effect from 1 May 2011:

OFFICE

REMUNERATION

Clerk of the Legislative Council

$198,863

Deputy Clerk of the Legislative Council

$151,738

Clerk of the Legislative Assembly

$198,863

Deputy Clerk of the Legislative Assembly

$151,738

1.1 The remuneration is inclusive of Annual Leave Loading.

1.2 The holders of these offices also are entitled to the supply of a fully maintained motor vehicle for business and private use.

Signed at Perth this 31st day of March 2011.

W S Coleman AM

C A Broadbent

B J Moore

CHAIRMAN

MEMBER

MEMBER

SALARIES AND ALLOWANCES TRIBUNAL

SIXTH SCHEDULE: COMMISSIONERS OF THE WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION

Pursuant to section 6(1)(d) of the Salaries and Allowances Act 1975 the Salaries and Allowances Tribunal determines the remuneration to be paid to the holders of the offices listed below and is as follows. The remuneration is effective from 1 May 2011.

PART 1 – REMUNERATION AND OFFICES

1.1 Chief Commissioner - $308,341 per annum.

1.2 Senior Commissioner - $288,002 per annum.

1.3 Commissioner - $272,844 per annum.

PART 2 – MOTOR VEHICLES

The following arrangements apply to the entitlement of each Commissioner to the provision of a fully maintained motor vehicle for business and private use:

2.1 All vehicles (being part of the Government-owned State Fleet) should be managed in accordance with the policies and conditions established and amended from time to time by the Department of Treasury and Finance (the effective owner of the State Fleet). Applicable terms and conditions are currently set out in the document "State Fleet - Agency General Agreement".

2.2 Selection of appropriate vehicles should be subject to consultation between the Chief Commissioner and the Department of the Registrar of the Western Australian Industrial Relations Commission (as the department administratively supporting the Commission and therefore the "Agency" responsible for managing the leasing arrangements for vehicles provided to Commissioners of the WAIRC). Although the cost of the vehicles is centrally funded, as a consequence of it being a benefit determined under the Salaries and Allowances Act 1975, the area remains an administrative responsibility of the Department to manage in a cost effective manner.

2.3 In providing for the use of a motor vehicle under this arrangement, the Tribunal requires that the Department of the Registrar of the Western Australian Industrial Relations Commission will take account of the following principles established by the Tribunal. The provision of a motor vehicle should:

meet the operational conveyance needs of the Commissioners;

be representative of fair value and benefit;

be supportive of the efficient, effective and ethical use of State resources;

be consistent with current principles of environmental sustainability, in particular, fuel efficiency and Government emissions targets;

provide for adequate safety and security of Commissioners;

be commensurate with the status of Commissioners; and

where private use of a vehicle is permitted, provide scope for personal preference in choice of motor vehicle consistent with the above principles.

2.4 For the purposes of determining the value of the motor vehicle lease relative to the value of the relevant benefit set out in this determination, the lease value shall be based on a whole of life lease over two years/40,000 kilometres. The lease value will be determined at the time of ordering the motor vehicle and will be inclusive of the cost of accessories. No additional costs shall be incurred by the office holder as a result of fluctuations in lease costs during the specified term of the lease.

2.5 Motor vehicles leased for Commissioners of the WAIRC shall not be changed prior to the expiration of the lease unless it is for operational reasons approved by the Chief Commissioner and the Department of the Registrar of the Western Australian Industrial Relations Commission.

2.6 The Chief Commissioner is entitled to the provision of a vehicle to the notional value of $26,900 per annum.

2.7 The Senior Commissioner and Commissioners are entitled to the provision of a vehicle to the notional value of $25,400 per annum.

2.8 Commissioners of the WAIRC may choose any vehicle and accessories in the relevant Western Australian Government Common Use Contract or an “off contract” vehicle and accessories available under Government leasing arrangements, the total cost of which does not exceed the maximum cost of accessing a motor vehicle benefit determined in this Part. Where the total cost of the chosen vehicle and accessories exceeds the maximum cost of accessing a motor vehicle benefit determined in this Part, the additional cost must be borne by the individual. This includes the purchase cost of any accessories and the installation cost and removal costs if required, before disposal of the vehicle.

2.9 In order to contain additional administrative costs associated with “off contract” leases, office holders may request cost quotations for not more than three vehicles outside the Government’s Common Use Contract for motor vehicles, in the process of selecting a vehicle under this arrangement.

2.10 Vehicles with supercharged or V8 engines are not included. Turbo charged engines with a capacity greater than 3.0 litres are not included.

2.11 Each lease should be tailored to achieve the most cost-effective arrangement based on individual usage patterns.

2.12 The Chief Commissioner must approve the selection of the vehicle and approve that the provision of an off road vehicle and factory fitted “roo” bar is substantiated by operational need. Off road vehicles shall be of a standard, the cost of which does not exceed the lease value of the Toyota Prado GXL Auto 3.0 litre Turbo Diesel fitted with “roo” bar (air bag compliant). This includes the purchase cost of other essential accessories approved by the Chief Commissioner.

PART 3 – TRAVELLING AND ACCOMMODATION ALLOWANCE

Where an overnight stay away from home is involved, a travelling and accommodation allowance (inclusive of accommodation, meals and incidentals) shall be payable in accordance with the relevant Australian Taxation Office reasonable benefit limit applicable from time to time and where accompanied by certification that the expense was appropriately incurred.

3.1 If the reasonably and properly incurred travelling and accommodation expenses exceed the abovementioned specified rates, the actual costs should be reimbursed. Receipts or vouchers must be provided in support of any claim for reimbursement in excess of the specified rate.

3.2 Claims for overnight stays in the Perth metropolitan area should be subject in each case to the approval of the Chief Commissioner.

3.3 Part payment of travelling and accommodation allowances shall apply in the following circumstances.

3.3.1 Where the Chief Commissioner, Senior Commissioner or Commissioner is accommodated in private, non-commercial accommodation, such as the home of a family member or friend, a rate of one third of the specified rate shall be payable.

3.3.2 Where the cost of commercial accommodation is met by an entity other than the Chief Commissioner, Senior Commissioner or Commissioner, an allowance shall be payable in accordance with the relevant Australian Taxation Office reasonable benefit limit for meals and incidentals applicable from time to time and where accompanied by certification that the expense was appropriately incurred.

3.3.3 Where in the case of commercial accommodation referred to in 3.3.2 above, the cost of a meal or meals is met by an entity other than the Chief Commissioner, Senior Commissioner or Commissioner, the amount of travelling allowance shall be reduced by the relevant amount(s) referred to in the preceding paragraph.

Signed at Perth this 31st day of March 2011.

W S Coleman AM

C A Broadbent

B J Moore

CHAIRMAN

MEMBER

MEMBER

SALARIES AND ALLOWANCES TRIBUNAL

[1]These are offices listed in Schedules 1 and 2 of the general determination exclusive of the Court Registrars, the Clerks and Deputy Clerks of the Parliament and the Industrial Relations Commissioners for whom remuneration is determined under separate schedules in the Tribunal’s determination.

The Government of Western Australia acknowledges the traditional custodians throughout Western Australia and their continuing connection to the land, waters and community. We pay our respects to all members of the Aboriginal communities and their cultures; and to Elders both past and present.